2026 National Day Holiday Galvanising Enterprise Shutdown Arrangements [SMM Analysis]

SMM, September 24:

With the National Day holiday approaching, the market is closely watching downstream galvanising enterprises' stocking and holiday arrangements. SMM recently communicated with galvanising enterprises regarding their holiday schedules during the National Day period. This survey covered 38 galvanising enterprises with a total capacity of approximately 25 million mt. Among them, some enterprises scheduled holidays ranging from 1 to 20 days during the National Day period, while others maintained normal production. The average holiday duration in 2026 was 3.61 days, which is expected to affect zinc consumption by approximately 9,203 mt, up 0.46 days from the average of 3.15 days in 2025, with the affected zinc consumption increasing by 1,971 mt.

It is understood that during the 2025 National Day holiday, ferrous metals prices performed relatively well at the time. Orders and shipments before the holiday were moderate, and downstream stocking demand was robust. This year, with both National Day and Mid-Autumn Festival approaching, ferrous metals prices remained persistently weak. Pre-holiday stockpiling of galvanized pipes fell short of expectations. In addition, galvanized pipe enterprises held relatively high finished product inventories, and transportation was restricted during the holiday. Some enterprises chose to reduce production through holidays to avoid further accumulation of finished product inventories. For structural parts, end-use demand was mediocre and fell short of expectations. Excessively high zinc prices suppressed consumption, and export orders also declined YoY, with overall orders pulling back notably. Therefore, overall orders for galvanising enterprises this year were weaker than last year, holiday days increased, and the impact on zinc consumption during the holiday also expanded. In terms of raw material inventory, zinc prices pulled back sharply in mid-September. Downstream enterprises restocked significantly through price-fixing and gradually picked up goods, with raw material inventory levels notably higher than at the beginning of the month. SMM will continue to monitor the post-holiday resumption of production.

(The above information is based on market data collection and comprehensive assessment by the SMM research team. The information provided herein is for reference only. This article does not constitute direct investment research advice. Clients should make prudent decisions and should not use this as a substitute for independent judgment. Any decisions made by clients are not related to Shanghai Metals Market.)